Mortgage Broker Company - How Much Can You Afford For A Mortgage? cont.

Now that you have your monthly income amount, work with 38.  Multiply your monthly income by .38 or 38%.  This will be the amount (maximum that a lender wants you to spend on housing costs and other debts. 

So total up your bills to find you monthly debt amount.  Do not include your utilities or auto insurance.  Just creditors.

Deduct that amount from the total you calculated, this is the maximum that a lender would lend you for housing costs.

Find out or estimate annual property taxes and homeowners insurance.   Subtract from the last amount.  There is your housing payment amount.

Sharon

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